Apple will allow services like Netflix and Spotify add a link to their apps that send users to a different website for payment, avoiding the app store commission.
The move, long been requested by subscription services operating ‘reader apps’, where the user may already have a pre-existing subscription.
It isn’t just music and movie services, as Apple will allow any app that offers ‘previously purchased content or content subscriptions for digital magazines, newspapers, books, audio, music and video.’
Apple isn’t being completely altruistic, as the move is part of a settlement with the Japan Fair Trade Commission (JFTP), applying to apps that ‘do not offer in-app digital goods and services for purchase’.
While the policy was the result of action in Japan, Apple confirmed it would be making the change to app stores around the world.
Apple will allow services like Netflix and Spotify add a link to their apps that send users to a different website for payment, avoiding the app store commission
It won’t be automatically available, as developers will need to request access to the External Link Account Entitlement program before being able to add app links.
It will allow developers of apps offering a subscription service to avoid the between 15 and 30 cent commission the tech giant charges to use its payment system.
However, Apple will still take a cut of any money made from sales within the app – so if Netflix offers a way to subscribe in-app, they will pay Apple a cut, but this will offer an alternative, that includes access to existing payment details.
Apple first announced the change in policy seven months ago, and is now getting ready to introduce the change – opening up access to developers on its website.
The move, long been requested by subscription services operating ‘reader apps’, where the user may already have a pre-existing subscription
Other ‘reader apps’ include Disney+ and Amazon’s Kindle store – providing users with a direct link to their website for sign ups.
It follows other concessions made by Apple to developers, following a legal case brought by Fornite creator Epic Games – including requiring links to ‘find out more’.
It also comes as Apple and other tech giants face increasing scrutiny from regulators and developers over what are described as restrictive practices.
Google has also launched a program aimed at testing third-party billing systems within Android, to give users options to pay outside of the Play Store.
This is likely a move to offset requirements being imposed by regulators that demand something similar – but keeping it under Google’s control.
Spotify is one of the beta testers for the new Google feature, and will give Android subscribers a choice of using the Google or Spotify billing system side-by-side.
Unlike the Apple solution, which is just a simple in-app link to the service providers website, cutting Apple out of the process, Google will still get a cut even if a customer opts to user an alternative billing system.
The cut is likely to be less than the usual 15 per cent, but it will still have a small charge, according to reports.
